Responsible Power for Africa
Power is Transformational
Access to reliable, affordable, and clean power is foundational to a strong economy, social development, and human flourishing.
Powering Rapid Growth
Africa is the second most populous continent, is extremely young and growing rapidly, and its power need is enormous and getting bigger.
Clear Market Opportunity
$500B is needed and there is a lack of capital providers in small-scale renewable energy assets with flexible mandates and capital structures.
Fund Overview
Fortis Green Renewables Green Fund I (“Fund”) will provide capital for small-scale renewable energy assets in Sub Saharan Africa (”SSA”), with initial focus on East Africa. The SSA power sector is poised for rapid growth over the coming decades. As the region seeks to increase power production and access, many African countries – especially those in East Africa, and particularly Kenya, Uganda, and Rwanda – have committed to increase capacity via renewable and sustainable sources such as hydro, solar, wind, and biomass. [3] Access to stable and high-quality power is foundational to both economic and social development. The Fund has an initial focus on small-scale run-of-the-river hydropower assets, which have been a primary driver of rural African electrification and is attractive due to its return potential coupled with limited negative environmental and social impacts. The Fund will invest across the development cycle in assets under development and operational assets, both of which present unique and potentially competitive return profiles.
Key Offering Terms
- Strategy: Small scale renewables-based power generation, including solar and wind, with a focus on run of the river hydropower.
- Geographic Focus: Sub Saharan Africa, with initial focus on East Africa
- Asset Class: Private equity and equity-like capital
- Fund Manager: Fortis Green Renewables
- Target Fund Size: $15M, with option to expand up to $20M
- Investment Size: Approximately 5 assets at $3M average ticket size
- Fund Term: 10 years total + 1 year extension (5 year investment period)
- Preferred Return:8% annual return, cumulative [4]
- Management Fee: 2% management fee on commitments [5]
- Carried Interest: 20% over Preferred Return, with no catch-up provision [6]
- Early Investor Terms: 10% Preferred Return / 15% Carried Interest on first $5M [7]
- Legal Structure: Delaware LLC with Mauritius SPV
- Currency: USD, with USD denominated Power Purchase Agreements (”PPA”)
- Suitability: Accredited Investors only
- Minimum Investment: $150,000, subject to Fund Manager approval
Fortis Green: Experienced Team
30 Years
Relevant Combined Experience
20 Countries
Investment and Operational Experience
$14.8 Billion
Combined Investment Experience
$7.4 Billion
Combined Power-Sector Investment Experience
Fortis Green Renewables Updates
Near Term Pipeline Overview Video
Project Beta Overview Video
Hydrobox Overview Video
Spark Energy Overview Video
Project Atom Overview Video
Footnotes
[1] World Bank Dataset.
[2] Africa Development Bank.
[3] USAID Power Africa.
[4] While the Preferred Return is a term of the offering, there is no guarantee that there will be sufficient funds to pay the Preferred Return.
[5] During the Investment Period, the management fee shall be 2% of the total commitments. Following the Investment Period, the management fee shall be 2% of the investment cost basis.
[6] The GP will be entitled to 20% of any distributions in excess of the Preferred Return, with no catch-up provision. Carried Interest on distributions from liquidity events may only be paid following the full return of invested capital to investors. Carried Interest paid to the GP is subject to a claw-back provision.
[7] Each investor included in the first $5 million of Commitments shall be entitled to these terms.
Related News
Advisor Webinar Replay: How to Select the Best Private Impact Investments for Your Clients
Do you want to get better at determining the most appropriate private values-based investments for your clients? Eagle Venture Fund hosted a special webinar featuring CommonGood's own Jeff Shafer and Stephen Hestor for RIAs and investment professionals that...
CGC to Visit Africa on Fortis Green Due Diligence Trip
As you read this CommonGood is on the way to Africa for a Due Diligence trip to tour recently acquired hydropower and solar investment assets in Fortis Green Renewables Fund 1, meet with co-investors and local partners, and see firsthand the day to day impact of...
Affordable and Workforce Housing Fund Officially Closed
The ASI Multi-Family Impact Fund, LP (MFIF), focused on the preservation of multi-family housing primarily serving minority populations and lower income residents, has officially closed. The fund is aimed at helping to fill the incredible demand for...